Meeting with State Governments on Promotion of Electronics System Design & Manufacturing

Department of Electronics & Information Technology (DeitY)Ministry of Communications and Information Technology

Government of India

Meeting with State Governments on

Promotion of Electronics System Design & Manufacturing

29th May 2013

“To create a globally competitive electronics design and manufacturing industry to meet the country's

needs and serve the international market”

Investment : US$ 100 BillionProduction : US$ 400 BillionEmployment : 28 Million

NPE Vision 2020

•Setting up of Semi-conductor Wafer Fab in India

I

•Preferential Market Access

II •Modified Special Package Incentive Scheme (MSIPS)

III

•Electronics Manufacturing Cluster Scheme (EMC)

IV

•Electronics Development Fund (EDF)V

•Mandating Safety StandardsVI

•Human Resource Development VII

NPE 2012 : A Holistic Approach

•Subsidy up-to ~USD 10 mil per 100 acres of land

•Applicable to both Greenfield and Brownfield projects

•Targeting 10 Clusters in 2013, and 200 by 2020

Electronics Manufacturing Clusters

Infrastructure Development• Roads• Power• Water• ETP’s• Testing facilities• Social Infrastructure

Subsidy of 50-75%

•Reimbursement of CVD/excise for capital equipment in non-SEZ units

•Reimbursement of Central taxes and duties for 10 years in select high tech units like fabs and ATMPs

•Available for entire value chain of identified electronics products

• Incentives available for 10 years from the date of approval

Substantial CAPEX subsidy

Subsidy of 20-25%

Modified SIPS

• India : Latest destination for Chip mfg. based on strength of Chip design

• Global responses sought in the form of EOI to setup Fabs

• Leading players have expressed interest

• Partners for Fab project to be finalized soon

Semiconductor Fab

FAB in India

Decision: Expected soon

• Preference to domestically manufactured electronic goods in

• Government procurement

• Electronic goods having security implications

• Extent of Government procurement from domestic manufacturers will not be less than 30 % of the total procurement.

• Twenty Nine electronics and telecom products notified by Ministry for providing preference in Government Procurement

• Enabling framework• WTO compatible• No discrimination between

foreign and Indian companies

Preferential Market Access (PMA)

EDFDaughter fund

– infra

Typical Daughter

fund

Daughter fund -Innovation

Typical Daughter fund

Typical Daughter

fund

Electronics Development Fund (Proposed)

Size of EDF

US$ 2 Bil

• Fund to promote Innovation and IP and R&D, product commercialization, etc in ESDM, nano-electronics & IT sectors

• Comprises of “Daughter Funds” of size US$ 20 Mil -100 Mil

• Each fund to have Govt. share from 25% - 75%; remaining from private and financial institutions

• 15 electronics products notified under safety standards on October 3, 2012

• Allows Self registration

• BIS accredited labs to test the goods

Mandating standards

Order comes into effect from

July, 2013

Export Incentives on FOB Value

Export Incentives

• Focused Product Scheme -2% duty credit script

• Special Focused Product Scheme-5% duty credit script

• Focused Market Scheme2-5%


Government of IndiaElectronics India - Billion needs , Million chips.

• To develop an ecosystem for Research, Development and IP creation in ESDM

• 2500 PhDs/annum by 2020 in ESDM

• Draft Scheme under formulation – Provides for Phase 1– 500 Full time 1000 part time in 5 years in ESDM , IT/ITES Sector

Enhancing PhDs in Electronics



• To improve quality of faculty of institutes/colleges• Physical and Financial Targets

– 15 Electronics & ICT Academies • Broad Features

– Proposals from individual States/UTs in collaboration with IITs/IIIT/NITs, etc.

-

• Scheme under approval

Category Estimated cost Target for 4 yrsCategory A (10) Rs. 25 crore 16,000

Category B (05) Rs. 10 crore 6,400

Electronics and ICT Academies



• Karnataka ESDM Policy, 2013• Electronics Hardware Policy, Govt. of Andhra Pradesh, 2012• West Bengal Policy on Information & Communications Tech.,

2012• Madhya Pradesh IT Inv. Policy 2012

State Policies



• MSIPS Applications– 12 applications with investment of ~ Rs 4500 crores; – Employment ~ 40,000

• Greenfield EMC Applications– 6 applications with investment of ~Rs 2000 crores

• Brownfield EMCs– 12 Brownfield EMCs notified– Other States under process

Status Feb-May 2013



• Create a specific policy focused for attracting investment in ESDM sector

– Effective single- window clearances– Reliable power etc.

• Indentify land for Greenfield EMCs– Japan specific EMC – Taiwan specific EMC etc.

• Develop common facilities in existing Brownfield EMCs– Bengaluru, Hyderabad , Sriperumbudur, Noida/Greater Noida,

Gurgaon/Manesar, etc.

Role of State Governments



• Preference to domestically manufactured electronic goods in major State procurements

– Laptops/Tablets– LEDs

• Create capacities in Universities and Colleges to take advantage of enhanced PhD programme.

Role of State Governments…. Contd.


Government of India.

Thank you

Documents

Meeting with State Governments on Promotion of Electronics System Design & Manufacturing